Credit rating bad? Credit cards can still help

Jan 19 2010 By Damien Porter

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In recent years, a worldwide recession has affected all of us. People, and businesses, have suffered greatly, and some have obviously fared worse than others. A poor credit score has been inevitable for the ones who have struggled the most. But for those whose history is bad, credit cards are still available.

If you’ve had a poor recent credit history, it will take you some time to rebuild your score. The only way to restore your rating is to make regular payments on time. Within a few months, your chances of gaining further credit will be greatly enhanced, and will see an increase in the amount of companies prepared to deal with you.

Taking a little time and effort to find the right card has always been sensible, but is more so now than ever before. In the past, looking for the right deals was a slow process, but nowadays it’s quick and easy, thanks to the information superhighway. The Internet is home to several comparison websites, each of which can save you hundreds of pounds.

Every application is judged individually, and those with County Court Judgements (CCJs) or defaults in the past will obviously find it more difficult to be accepted. If successful, it’s worth remembering that a higher Annual Percentage Rate (APR) will be charged, to reflect the greater risk taken by the card company.

Likewise, at the onset of a new account, the credit limit is likely to be relatively low. Over a period of time, assuming a good repayment record, it may be increased from time to time. It’s good to know that even if your history is bad credit cards can help to strengthen the user’s credibility.

As well as those with a record of inconsistent repayments, there are other people who might find it difficult to obtain credit. Those on a low income, the self-employed, full-time carers and students can all fall into this category, so knowing where to get the best cards can be vitally important.

People who are new to credit, such as school-leavers and the long-term unemployed, often have no rating at all. For them, being a higher risk doesn’t necessarily present a great problem, and it won’t be long before a healthy credit score is achieved.

Thanks to the Internet, there are several websites available that can guide the user through the selection process. Comparing deals is a simple process, and can be the first step towards restoring a sound reputation. Finding the right card has never been easier.

There are thousands of people already using specialist accounts, so it’s reassuring to know you’re not the only one in this situation. Acceptance isn’t guaranteed, of course, but they will always take each application on its full merit.

Applying for cards is so simple and user-friendly, and can even be done with a direct link to the provider from the comparison sites. Within a matter of minutes, and a few clicks of a computer mouse, you could be taking the first steps on the road to financial recovery.